Oil and gas Minister Mynbayev does not rule out suspension at Karachaganak

18 may 2011, 12:41

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Sauat Mynbayev. Photo courtesy of focus.kz

Kazakhstan’s Minister of Oil and Gas Sauat Mynbayev does not rule out “suspension” of the Karachaganak project in case the sides fail to come to terms with Karachaganak Petroleum Operating (KPО) over the pending issues.

He said that on the sidelines of the 24th plenary session of the Foreign Investors’ Council (FIC) has been opened today at Nazarbayev University in Astana.

“Without an agreement there will be no 3rd stage of the Project”, he said, adding that “the 3rd stage implies bigger funds involved and greater production output”.

Kazakhstan hopes to complete talks on purchasing a stake in Karachaganak Petroleum Operating in the shortest time, Timur Kulibayev, Chairman of the Board at Samruk-Kazyna Sovereign Wealth Fund, had said April 28. “We are in talks for KazMunaiGas National Oil Company to acquire 10% in the project and we hope to arrive at some agreement within reasonably shortest time”, Mr. Kulibayev told journalists in Almaty at the time.

With its 1.2 billion tons of oil and condensed gas and 1.35 trillion cubic metres of gas, Karachaganak is one of the largest O&G fileds in the world. Karachagank accounts for 49% of all the gas production and 18% of oil production in Kazkahstan.

Karachaganak Petroleum Operating (KPO) is a consortium of companies to develop Karachaganak oilfiled. The consortium includes BG Group, Eni (32.5% each), Chevron (20%) and LUKOIL (15%). KPO operates in accordance with a PSA signed with the Kazakh Government in November 1997. According to the PSA, the consortium shall be operating the project up to 2038.

Earlier it was reported that Kazakhstan’s share in the profits from Karachaganak oilfield developed by Karachaganak Petroleum Operating (KPO) stands at 20%, according to Minister of Oil and Gas Sauat Mynbayev.